Reuters: Australian Supply Weighs on Prices as Exports Pickup

Asian liquefied natural gas (LNG) prices for November delivery extended losses as new Australian supply hit the market and demand remained subdued.

The price of Asian spot cargoes for November delivery slid to $6.60 per million British thermal units (mmBtu), down from $6.80 the previous week and $10.10 at the start of the year.

The price fall coincided with the continued pickup in Australian production. Gladstone became the latest project to gear up exports with a vessel set to begin loading shortly for a maiden delivery to Korea Gas Corp (KOGAS), operator Santos Ltd said.

Demand from the top importing region Asia was "sluggish", however, making it difficult to see where all the upcoming production would end up, a ship broker said. MORE